Oaktree to Cerberus Said to Eye NH Hoteles’ Sotogrande

April 25 (Bloomberg) -- Oaktree Capital Group LLC and
Cerberus Capital Management LP are among bidders for NH Hoteles
SA’s real-estate unit Sotogrande SA as the Spanish hotelier
reorganizes its assets to cut costs and debt, people familiar
with the matter said.

The investment firms are handing in offers this month for
Sotogrande, which may fetch more than 200 million euros ($277
million), the people said, asking not to be identified because
the process is private. Binding offers are expected at the
beginning of June, one of them said. Jefferies Group LLC is
helping NH Hoteles with the sale process of its 98 percent stake
in Sotogrande, the people said.

NH Hoteles, which operates about 400 hotels in 28 countries
in Europe, the Americas and Africa, is seeking ways to cut costs
while selling some hotels that no longer fit with its strategy,
the company said in February. The hotelier plans to generate 125
million euros from hotel disposals in 2014.

The Madrid-based company is considering ways to improve its
financial situation and holding talks with investors about
potential asset sales, a spokesman said, declining to comment on
potential bidders. Representatives at Oaktree, Cerberus and
Jefferies declined to comment.

Sotogrande’s assets include a luxury property development
in the southern province of Cadiz with golf courses, a center to
play polo and a bay for boats and yachts. It also has assets in
Mexico, the Dominican Republic and Italy.